The good, the bad and the ugly of legal tech
Osprey Approach gathers law firm experts together to share their insights on investing in legal tech — and to offer practical advice and guidance on leveraging technology to run a successful modern legal business
In the first episode of series three of the Build Better Habits webinars, host by Amy Bruce, head of marketing at Osprey Approach, was joined by Peter Ambrose, CEO at The Partnership and Legalito; Cathy Kirby, consultant at Baskerville Drummond; and Jon Batchelor, strategic director at Farnworth Rose Solicitors.
The expert guests shared their insights on the good, the bad and the ugly of investing in legal tech and offered practical advice and guidance on leveraging technology to run a successful modern law firm.
- The tech tools and systems SME law firms should invest in
- How to build an effective tech strategy
- Advice for measuring ROI on tech investments
- Lessons learnt from real-life tech projects
- How AI will impact SME law firms
Increasing investment in legal tech for SME law firms
The discussion began with a look at the current trends in tech investment among law firms. According to the 2024 LPM Frontiers report, 64% of SME leaders plan to increase their tech spend over the next 12 months. Bruce posed the question to the panellists: are firms investing in new systems and tools, or are they enhancing their existing ones?
Peter Ambrose noted that his firm has always been tech-heavy, adopting a “build, not buy” strategy. “Every year we increase the amount that we spend,” he said, highlighting their continuous investment in technology to reduce risk.
Cathy Kirby observed that many firms are transitioning from older practice management systems to newer ones, driven by the shift to software-as-a-service (SaaS) pricing models: “The five to 10-year cost of using a SaaS system is greater, but you get all the flexibility, agility and security that goes around that model,” she explained.
Jon Batchelor emphasised the importance of aligning tech investments with business strategy. “It’s about having a clear understanding of what it is you want these tools to do for you,” he said. He stressed the need for firms to be clear about their goals and to seek expert help in selecting the right tools.
What technology should law firms be investing in?
When asked what specific tools and systems firms should invest in, the panellists provided varied insights:
- Peter Ambrose: He believes in investing in technology that provides more information for lawyers, helping them manage cases more effectively and protect themselves from potential abuse. “Service is not about answering the phone with a smile. It’s about giving people tools and the data to be able to deliver accurate information to their clients,” he said.
- Cathy Kirby: She stressed the importance of understanding the business’s needs and aligning tech investments with those needs. “Focus on the parts of the business that are going to either make you operationally better or performance-wise better,” she advised.
- Jon Batchelor: “It’s a huge challenge to try and understand what to buy, when to buy, what benefit you’re going to get out of it.” He highlighted the need for tech that drive your business goals and keeps you competitive: “Do it for a purpose and be very clear what it is that you want this stuff to achieve for you and find the tools which will enable you to achieve it.”
Forming an effective tech strategy
Creating a robust tech strategy is essential for law firms aiming to stay competitive and efficient in today’s digital landscape. The panellists shared their top six business habits for forming an effective tech strategy:
- Client-centric approach
- Clear IT principles
- Team training and support
- Early engagement with end-users
- A paranoid mindset
- Business continuity
To find out the experts’ best practices for each habit, watch the full webinar here
Measuring ROI on tech investments
All panellists expressed their scepticism about the traditional ROI argument. Ambrose expressed that financial ROI shouldn’t be a success measure: “I just don’t buy it. I just can’t see it,” he said. Instead, he believes in investing in tech to protect the business and ensure its continuity.
Kirby suggested using a maturity model to measure success, rather than focusing solely on ROI. “The target is to go up that maturity model,” she explained. Batchelor agreed, emphasising the importance of defining the purpose of tech investments and measuring success based on whether that purpose is achieved.
The good, the bad and the ugly of tech investments
The panellists shared their experiences with tech investments, highlighting both successes and failures including unexpected software functionality, security saviours and office closures.
Watch the full webinar to discover the first-hand stories and experiences
The role of AI in legal tech
The discussion concluded with a look at AI in legal tech. While there is optimism about AI’s potential, the panellists advised caution. “It’s too early for it. The liability isn’t understood,” Ambrose warned. Kirby added that firms should keep an eye on their existing suppliers, as many are integrating AI in a controlled and secure manner.
The panellists shared their recommendations and thoughts on the opportunities and risks that lie ahead with AI:
Opportunities: enhanced efficiency and productivity, analysing large volumes of data to summarise insights, and proving additional flexibility in the service firms can provide.
Challenges and risks: liability concerns, data privacy and security, integration with existing systems.
Strategic adoption considerations: keep informed and engaged on developments, keep a clear purpose in mind, partner with trusted suppliers.
Stay competitive with smart tech investments
Investing in legal tech is not just about keeping up with the latest trends; it’s about making strategic decisions that align with your firm’s goals and client expectations. By understanding the needs of your business, establishing clear IT principles, and ensuring your team is well-supported, you can create a tech strategy that drives success. As the panellists highlighted, the key is to be cautious, stay informed, and always keep the client’s needs at the forefront of your decisions.
For more exclusive advice and first-hand stories on the good, the bad and the ugly of legal tech, watch the full episode on-demand now. You’ll hear Ambrose, Kirby and Batchelor share their experience of sourcing, building and investing in tech.
Implementing continuous improvement is one of the four fundamental habits we’ve outlined that all modern law firms should adopt for long-term success. We’ve covered all four habits in our Build Better Habits webinar series, which you can watch on-demand now.
